Chinese money laundering

How The Chinese Use Illegal Online Gambling And Tether To Launder Over $1 Trillion Yuan

Tyler Durden's Photo
SATURDAY, DEC 26, 2020 - 23:00

It has long been known that over the past decade Chinese oligarchs who wanted to bypass Beijing's capital controls and anti-money laundering firewall, would smuggle billions of dollars outside of China by using the Macau casino money-laundering infrastructure, prompting Beijing to crack down aggressively on this popular firewall loophole, with mixed success.

What is less known is that as the capital controls game of cat and mouse escalated in recent years, so have Chinese money laundering tactics and now according to Caixin, Chinese citizens launder as much as $153 billion per year with the help of online gambling and such cryptocurrency as tether, which has long been rumored to be a key driver of upside into bitcoin (the same bitcoin we said in 2015 when it was $250 would soar thanks to Chinese attempts to circumvent the capital firewall... we were right).

Here is the story of how Beijing made this starting discovery, courtesy of Caixin: